Dissertation on Deposit and Credit Schemes”of National Bank Limited.

Chapter- 1IntroductionObjective of the study:

Broad objective: The broad objectives of this dissertation are: To fulfill the requirement of the degree of MBA program. To gain practical experience in the job field.

Specific objective: The specific objectives are: To get an overall idea about the performance of National Bank Ltd. To have a clear idea about the various aspects of financial Services provided by

National Bank Limited (NBL). To analyze and evaluate the Customer Service of National Bank Limited (NBL).

Scope of the study: The report describes the services of National Bank Limited (NBL) and also investigates the perceptions of the customers towards the services and other operational activities performed by the bank and their effects on the satisfaction of the customers.

Methodology of the Study: The report was fully exploratory in nature. Data have been collected from both primary and secondary sources.

Sample Design : There were 38 office executives in the bank. The focus group was the employees of General Services Department. 18 employees were taken at random as sample size for preparing the report.The primary sources are-

Direct communication with the clients & employees. Exposure on different desks of the bank. Face to face conversation.

The secondary sources are-

Annual Report of National Bank Limited. Periodicals published by the Bangladesh Bank. Different publications regarding banking functions, foreign exchange

operation, and credit policies. Limitations of the Study:I faced some limitations during the internship period. Some of these notable things are as under:

Learning all the banking functions within three months was really tough. Another limitation of this report is Bank’s policy of not disclosing some data and

information for obvious reason, which could be very much useful. The executives of the bank are always busy & I could not get access to all the areas

required for the report. Time constraint was another limitation. 3 months time is not sufficient to cover all

the arear. Chapter- 2

Overview of National Bank Limited

Background of National Bank Limited:

National Bank Limited is a scheduled private commercial Bank established on March 28,

1983. Under the Banking Company Act, 1991 (amended up to 1997) and incorporated as a

Private Limited Company under Companies Act, 1994. The Bank started commercial Banking

operations from June 02, 1999. From then with in a short time MBL established itself in a

strong position in the economy of the country. It has earned significant reputation in the

country’s Banking sector and created a wide image in the eye of the people.

The dream of creating NBL, which is ‘Bank of Bengal’, has become successful because of the

initiative of some persons who are the sponsors of NBL. There are 30 sponsors in National

Bank Limited and all of them are highly regarded for their entrepreneurial competence.

Objectives & Goals of National Bank Limited: The aim of National Bank Limited is to

become a leading Bank of the 1st generation by providing better service to the clients along

with other quality operations in Private Banking Sector. The bank has some mission to

achieve the organizational goals. This are-

NBL is always ready to maintain the highest quality to services by upgrading banking

technology prudence in management and by applying high standard of business

ethics through its established commitment and heritage.

NBL is committed to ensure its contribution to national economy by increasing its

profitability through professional and disciplined growth strategy for its customer

and by creating corporate culture in international banking arena.

The objective of NBL is not only to earn profit but also to keep the social

commitment and to ensure its co-operation to the person of all level, to the

businessman, industrialist-specially who are engaged in establishing large-scale

industry by consortium and the agro-based export oriented medium & small-scale

industries by self-inspiration.

NBL, one of the renowned private banks is committed to continue its endeavor by

rapidly increasing the investment of honorable shareholders into assets.

NBL believes in building up strong-based capitalization of the country.

NBL is committed to continue its activities in the new horizon of business with a view

to developing service oriented industry and culture of morality and its maintenance

in banking.

NBL is always pre-occupied to encourage the inventors for purchasing its share by

creating the opportunity of long-term investment and increasing the value of share

through prosperity as developed day by day.

NBL is playing a vital role in Socio-economic development of Bangladesh by way of

linkage with rest of the world by developing worldwide network in domestic and

international operations.

Vision of National Bank Limited:

“Would make finest corporate citizen”

Mission of National Bank Limited:

“Will become most caring, focused for equitable growth based on diversified deployment of

resources, and nevertheless would remain healthy and gainfully profitable bank.

Organogram:

Managing Director and CEO

Deputy Managing Director

Additional Managing Director

Assistant Officer

Functions of National Bank Limited :

The functions of commercial banks are now wide and varied. However, the functions of

Commercial banks may broadly be classified under the following two categories-

A. Primary Functions; and

B. Secondary Functions.

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principle Officer

Principle Officer

Senior Officer

Officer

Junior Officer

A. Primary Functions:

The primary functions of Mercantile Bank Limited are same as other Commercial Banks.

These functions include-

i. Acceptance of deposits.

ii. Advancement of loan.

iii. Creates credit.

iv. Creates medium of exchange.

i. Accepts Deposits:

The first primary function of bank is to accept deposits of money from the public or

saver group. The total deposits held by the banker are broadly classified as-

a) Demand deposits:

Demand deposits are withdrawn able on demand and thus no prior notice is

needed. Deposits in Current Account and Saving Accounts fall in this category.

b) Time deposits:

Time deposits are repayable on the expiry of a fixed period of time only. Fixed

Deposit Accounts, Recurring Deposit Accounts and deposits payable at specified

notice fall in this category.

The banks usually pay interest on all types of deposit accounts except the

current accounts.

ii. Lends Money:

Banking business essentially involves lending. In fact the deposits are accepted for

lending or investment. Depending on the requirements of the borrower, banks lend

money in the forms following-

a) Loans;

b) Overdraft;

c) Cash credit; and

d) Bills purchased and discounted.

iii. Creates Credit:

The creation of credit is one of the important functions of Commercial Banks. In the

ordinary course of business, banks accept deposits from the public and lend money

to its customers. When a bank extends loan, it does not pay the amount in cash.

Rather, the bank credits the amount in the bank account of the borrower and allows

withdrawing the required amount by cheques. In this way, a bank creates credit or

deposits, which are regarded as money and can be used for the purchase goods and

services and also for the payment of debt just like currency notes.

iv. Creation of Medium of Exchange:

Commercial Banks usually issues cheque, which circulates like money in the society

and thus creates the medium of exchange.

B. Secondary Functions:

Modern commercial Banks like NBL, besides performing the functions, cover a wide range of

financial and non-financial services to meet the growing needs of the time. Some of these

services are available only to the customers while others are available to the public in

general.

The subsidiary services provided by a modern banker may be classified into following three

groups-

i. Agency Services.

ii. Generally Utility Services.

iii. Foreign Exchange Business.

Performance of NBL - At a Glance

(BDT in millions )

Particulars 2006 2007 2008 2009

Authorized Capital 1200.00 1200.00 1200.00 1200.00

Paid-up Capital 319.77 639.53 799.41 999.27

Assets 16383.17 18324.73 24098.09 28890.48

Deposits 15150.42 16285.19 22385.19 25727.43

Advances 8896.19 10775.95 17669.29 21857.05

Import 15112.50 20380.80 28325.20 33271.90

Export 11377.30 15250.60 17411.00 24108.57

Profit after tax 256.74 215.91 312.58 386.83

No. of Branches 25 28 100 131

No. of Employees 363 492 1204 2150

Source: Annual Report 2007 of NBL

Deposits:

The Bank mobilized total deposits of Tk. 25727.48 million as of 31st Dec, 2007 as compared

to Tk. 22385.19 million as of 31st Dec, 2006. Competitive interest rates, deposits

mobilization efforts of the Bank and confidence posed by the customer in the Bank,

contribute to the notable growth in deposits. Efforts are being made to broaden the deposit

base while reducing the average cost of fund.

Loans & Advance:

The Position of Loans & Advance of Marketing of Limited is given in the below:

Financial Position:

ASSET PORTFOLIO

Year-2009 (BDT in Million)

Components Amount % of Total

0

5000

10000

15000200002500030000

IN MILLIONOf Take

2009 2008 2007 2006

YEAR

DEPOSIT

Series1

0

500010000

150002000

0

25000

IN MILLIONOf Taka

2009

2008

2007

2006YEA

R

LOANS & ADVANCE

2009200820072006

Loans and Advances 21,857.05 75.65Investments 3,517.68 12.18Cash 1,878.41 6.50Money at Call and Short Notice 625.00 2.16Balances with other Banks 118.19 0.41Other Assets 894.15 3.10Total 28,890.48 100.00

Credit Portfolio:

Year-2009 (BDT in millions)

Sectors/Segments Volume %

Exports ((RMG) 5,793.43 26.51

Trade Finance 4,078.53 18.66

Food, Beverage, Edible Oil etc. 2,973.64 13.60

NBFIs 1,721.60 7.88

Construction and Housing 1,693.31 7.75

Engineering (Iron and steel/electrical) 757.89 3.47

Textile (Linkage Industry) 576.08 2.64

Hospital and Medical Services 315.45 1.44

Paper and Publication 272.99 1.25

Plastic and Plastic Materials 266.27 1.22

Telecommunication 252.75 1.16

Glass and glass products 245.62 1.12

Asset Portfolio

76%

12%7%

2%

0%

3%Loans and Advances

Investments

Cash

Money at Call and ShortNotice

Balances with otherBanks

Other Assets

Transportation 177.27 0.81

Pharmaceuticals 152.04 0.70

Information Technology 48.33 0.22

Others 2,531.85 11.58

Total 21,857.05 100.00

Comparative Statement of Income & Expenditure:

A comparative income position of the Company for the year ended on 31st December 2008

and 2009 are as follows:

Description 2008 2009Interest Discount and similar Income 2,191,648,398 2,595,262,904Fees, Commission and Brokerage 217,146,130 300, 611, 339Gain less losses arising from Dealing Securities

268,210,909 259,202,408

Other Operating Income 94,289,760 192,323,014Profit less losses on interest rate changes (30,997,398) 82,610,516Total 2,740,297,799 3,430,010,181

Expenditure:

A comparative expenditure position of the Company for the year ended on 31 st December

2008 and 2009are as follows:

Description 2008 2009

Interest Fees and Commission 1,531,630,250 1,944,655,065

Administrative Expenses 214,607, 313 280, 405, 091

Other Operating Expenses 156,932,684 214,312,000

Depreciation on Banking Assets 15,366,126 23,404,125

Total 1,918,536,373 2,462,776,281

Net Profit:

As of December 31, 2009 the NBL earned at amount to Tk. 386.83 million. During the period

of 2008 the profit was Tk. 312.58 million. So the profit of 2009 has increased than 2008.

Chapter – 3

The Deposit Schemes of National Bank Ltd.

Double Benefit Deposit Scheme (DBDS)

Objectives Giving maximum benefit to the depositor.

Help in meeting specific needs like education, marriage etc. Deposit becomes double in seven years.

ModeTenure of the deposit is 7.5 yearsAmount of Deposit Period Amount Payable1,00,000 7.5 Years 2,00,000Other Features

The Minimum amount of deposit is BDT 50,000.00(Fifty thousand) or its multiples. All taxes, duty, levy and /or any other surcharges presently in force or that may be

imposed by the Government of Bangladesh (GOB) from time to time will be deducted or recovered from the deposit account under this scheme.

In case of premature encashment interest will be paid on Saving A/C rate. Loan may be granted up to maximum 80% of the deposited amount but minimum

principle amount must be BDT 20,000.00. Loan processing fee be realized BDT 50.00 only and usual stamp costs also be

realized.

Family Maintenance Deposit (FMD)Objectives

Help the retired persons for investing their retirement benefits. Create investment opportunities for Non-Resident Bangladeshi. Explore investment opportunities for school, college, university etc. Give investment opportunities for Trust; Foundation etc.

Mode Deposit a fixed amount of money for 05 (Five) years. Depositor will get a certain sum of money in each month proportion to his/her

deposit during the entire tenure.

Benefits: Tenure of deposit is 05 (Five) years. Minimum amount of required deposit is TK.50, 000.00 or it’s multiple:

Deposit Monthly Benefit (Amount in TK.)1,00,000 800 2,00,000 1 ,600 3,00,000 2 ,400

Other Features The Minimum amount of deposit is BDT 50,000.00 (Fifty thousand) or its multiples. All taxes, duty, levy and /or any other surcharges presently in force or that may be

imposed by the Government of Bangladesh (GOB) from time to time will be deducted or recovered from the deposit account under this scheme.

In case of premature encashment interest will be paid on Saving A/C rate. A saving account will be needed to be maintained to receive quarterly benefit

payment.

Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, monthly benefits of FMD account will be credited only to loan account.

Loan processing fee be realized BDT 50.00 only and stamp costs also be realized.

NBL Monthly Savings Scheme (NMS)

Objectives

Build up habit of savings. Attract small savers. Saving for rainy days.

Mode Monthly installments of various sizes.

Benefits:

(Amount in TK.)

Period Monthly Installment

250 500 1,000

Benefits

5 Years 19,125 38,250 76,500

8 Years 35,750 71,500 1,43,500

10 Years 50,000 1,00,000 2,00,000

Period Monthly Installment

1500 2500 5,000

Benefits

5 Years 1,14,750 1,91,250 3,82,500

8 Years 2,14,500 3,57,500 7,15,000

10 Years 3,00,000 5,00,000 10,00,000

Other Features All taxes, duty, levy and /or any other surcharges presently in force or that may be

imposed by the Government of Bangladesh (GOB) from time to time will be deducted or recovered from the deposit account under this scheme.

In case of premature encashment interest will be paid on Saving A/C rate.

Upon deposit of installment for at least 01 year (minimum deposit amount must be BDT 12,000.00) under this scheme, loan may be granted up to maximum 82% of the deposited amount.

Loan processing fee be realized BDT 50.00 only and stamp costs also be realized.

Quarterly Benefit Deposit Scheme

The 'Quarterly Benefit Deposit Scheme' will be maintained for a period of 3 (three) years and the minimum amount of deposit is BDT 50,000.00 (fifty thousand) or its multiples. Interest will be paid on quarterly basis as per example given below. On maturity, the principal amount will be paid back.

Example

Initial Deposit (BDT) Term Quarterly Benefit Payable (BDT)50,000 3 Years 1,200 100,000 3 Years 2,400 200,000 3 Years 3,600

Other Features All taxes, duty, levy and /or any other surcharges presently in force or that may be

imposed by the Government of Bangladesh (GOB) from time to time will be deducted or recovered from the deposit account under this scheme.

Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, quarterly benefits will be credited only to loan account.

Loan processing fee be realized BDT 50.00 only and usual stamp costs also be realized.

1.5 Times Benefit Deposit Scheme

Under the ‘1.5 Times Benefit Deposit Scheme’ a deposit of minimum BDT 50,000.00 (fifty thousand) or its multiples will be received for a period of 4.2 years. On maturity, 1.5 times of the deposited amount will be paid back to the account holder as per example given below:

Example

Initial Deposit (BDT) 50,000.00 1,00,000.00 5,00,000.00Return after 4.2 years (BDT) with benefits 75,000.00 1,50,000.00 7,50,000.00

Minimum deposit amount 1, 00,000 (One Lac) only.

Other Features All taxes, duty, levy and /or any other surcharges presently in force or that may be

imposed by the Government of Bangladesh (GOB) from time to time will be deducted or recovered from the deposit account under this scheme.

In case of premature encashment interest will be paid on Saving A/C rate. However, no interest shall be paid if premature encashment take place before expiry of 1 (one) year.

In the event of death of the depositor before the maturity, the deposit account may be encased (premature) as per rule or may be continued up to maturity on written approach by the nominee(s).

Loan may be granted up to maximum 80% of the deposited amount but minimum principle amount must be BDT 20,000.00

Loan processing fee be realized BDT 50.00 only and usual stamp costs also be realized.

Advance Benefit Deposit Scheme (ABDS)

Objective

Getting extra benefit from minimum deposit.

Mode Maintained for a period of 2 (Two) years.

Interest Rate Per BDT One Lac BDT 1 Lac (One Lac) Tk. 9,500.00 for first year Tk. 1,09,250.00 for second year

Other Features

All taxes, duty, levy and/or any other surcharges presently in force or that may be imposed by the government of Bangladesh from time to time in Deposit Accounts will also be applicable for the account for the account opened under this scheme and such taxes, duty, levy and/or any other surcharges shall be deducted or recovered from the deposit account under this schemes.

Loan may be granted up to maximum 70% of deposit.

Chapter – 4

The Credit Schemes of National Bank Ltd.

Consumers Credit Scheme

Objectives Help fixed-income people for buying household durable. For the amount up to Tk. 1, 00,000 the period is two years. Interest rate will be charged quarterly rest.

Terms & Conditions Interest Rate: 16.00%. Risk Fund: 1.00%. Supervision Charge (per year on outstanding balances) 0.25%. Application Fee BDT 200.00.

Special Feature

The loan amount is directly credited to the customer's account.

Doctors' Credit Scheme

Objectives

Helping new F.C.P.S. or post-graduate doctors for setting up chambers and buying medical equipment.

Helping experienced doctors for refurnishing chambers and buying medical equipment.

Assist private clinics for acquiring modern medical equipment. Interest rate will be charged at quarterly rate

Terms & Conditions

Equity: » For new doctor 10%. » For experienced doctor 15%. » For Hospital, Clinic and Diagnostic Center 20%.

Interest Rate 16.00%. Risk Fund Tk. 1.00%. Repayment period 5 years. Credit Limit:

» For new doctor 5.00 Lac. » For experienced doctor 15.00 Lac. » For Hospital, Clinic and Diagnostic Center 50.00 Lac.

Application Fee BDT 200.00. Service Charge, Ledger Fee 0.25% per year on outstanding balances.

Personal Loan Scheme Objectives

Help fixed-income people for buying household durable. For the amount up to Tk. 3, 00,000 the period is 03 (Three) years. Interest rate will be charged quarterly rate.

Mode

Interest Rate 16.00%. Risk Fund 1.00%. Supervision Charge (Per year on outstanding balances) 1.00%. Application Fee BDT 200.00.

Special Feature

The loan amount is directly credited to the customer's accountRural Development Scheme Objectives

Raise the standard of living of rural people.

Initiative to break the vicious cycle of poverty. Enhance the purchasing power of rural people.

Terms & Conditions

Security: Group guarantee, no collateral

Lease Financing

ObjectivesAssist and encourage entrepreneurs for acquiring capital machinery, medical equipment, automobiles etc.Terms & Conditions

Lease period 3 to 7 years. Lease rent @ 16.00%. Risk Fund 1.00%. Service Charge 0.25% per year on outstanding balances.

Security

Primary: Ownership of fixed items. Collateral: Landed property, Bank Guarantee, ICB Unit Certificate etc. Loan limits BDT 3.00 Lac or 8 times of monthly evidenced income, whichever is

lower. Repayment period is Maximum 3 years, which is 36 monthly installments.

Chapter - 5SWOT Analysis 1. Strengths of National Bank Limited:

National Bank Limited (NBL) is newly established Commercial Bank in the Banking Sector. But it has built strong reputation within short time.

The Financial Condition of NBL is very strong. It’s Loan and Deposit quality is better than most other Private Commercial Banks in Bangladesh.

NBL has strong and wide network throughout the country and provides quality services to every level of Customers.

Group Formation: » 30 persons in a group. » 1 group leader. » 6 sub-groups consisting 5 people each in a group.

» 1 sub-group leader in each sub-group. Credit Limit:

» Maximum Tk. 5,000 per person. » Gradually enhance able up to Tk. 10,000.

Interest Rate 14.00%. Risk Fund 1.00. Service Charge 0.25% per year on outstanding

The Management Team and Board of Directors consist of eminent personalities from the realm of commerce and industries of the country, which made the bank more reliable and trustworthy.

2. Weaknesses of National Bank Limited (NBL):

One of the greatest weaknesses for NBL is the Shortage of Manpower in every Division. Most of the time one officer has to perform several jobs at a time. This tremendous pressure may make them exhausted, which can create dissatisfaction to the customers.

Lack of motivation and incentives for the employees discourages them to provide the best service to the customers. This is another weakness of the Bank.

High restrictions and low interest rate discourage the customers for opening and maintaining accounts with NBL.

3. Opportunities of National Bank Limited (NBL): The greatest opportunity for NBL lies in the increase of standard of living of a certain

mass of the population as well as their acceptance of the nation of Consumer Financing and Short Term Lending.

The Credit Facility offered such as Personal Loan, CC Hypo, Hire Purchase, SME Loan, Doctors Loan etc. by NBL attracts security and status conscious businessmen and as well as service holders with higher income group.

4. Threats of National Bank Limited (NBL):

The emergence of several private and foreign banks in few years, offering similar service with less or free charge for the facilities can be a major threat of NBL.

The Central Bank exercise strict control over all banking activities in local banks like NBL. Sometimes the restrictions impose barrier in the normal operations and policies of the bank.

Rival banks can easily copy the products offered by NBL. Therefore the bank is in continuous of product innovation to gain temporary advantage over its competitors. This is another threat of the bank.

Present condition of economy and political instability in Bangladesh can be threat. Chapter – 6Findings of the Study:

The entire department of Singair Branch does not have computer facilities equally, which is slowing down the activities of the Bank and creating customer disappointment.

While working in the Singair Branch I observed that the advance of the branch is not in favor of the Bank.

Lack of motivating mid & lower level officers.

Lower level officers compared to the upper & mid level officers are not happy regarding their promotion.

In a few cases I have seen that the right person is not placed in the right place.

Centralization of NBL sometimes in turn leads to slow down their activities.

NBL is not much conscious about the marketing of their products.

NBL has introduced Q-Cash service in the city. But unfortunately all the Branches of NBL are not providing this service. Likewise Singair Branch has not started Q-Cash Card service that is way their customer is heading to the other Bank for these facilities.

NBL has not yet setup proper network system, which is very important to compete with the others in this electronic world.

Software’s that are using by the Bank are not compatible to the electronic world.

Compare to other private banks, the interior decoration of NBL Singair Branch is not modern.

Conclusion:As I am fresh in the Banking Sector, so these 90 days of internship program gave me a little bit of different type of experience. It is a well-established statement that, practical situations always differ from theoretical explanation. During internship program at Singair SME Krishi Branch of National Bank Limited, the general banking desks have been observed by me and I have found theory deviates from practical more or less. I have observed the function of General Banking of NBL, which will help me a lot in my future.

As a private bank, NBL is trying its best to extend their service to the public. NBL, Singair SME Krishi Branch provides all kinds of commercial banking services to its customers. Foreign Exchange department is doing well, rendering all the services related to international trade and remittance. Though the advance of the Singair SME Krishi Branch is a little high, the credit department will be in a good position if the Singair SME Krishi manages to recover that. General banking is engaged in cash receipt, payment, cheque clearing, opening accounts and local remittance etc.

It is obvious that, the Bank will expand day-by-day so is the customer. According to the Chairman, the trust of the customer is the greatest asset of the National Bank Limited. So if the NBL wants to continue a profitable business and position itself as one of the top banks in the Bank arena then it has to earn the trust of their Assets. To do so NBL must keep pace with their growing customer needs in the ever-changing world. Customers now demand not only a high interest but also faster and better service. Here the most significant of this report is about the various aspects of customer service and evaluation of those services with emphasis on customer satisfaction. If the Bank’s executives are very much conscious regarding the best satisfaction to the customers through different comprehensive packages and policies then with the near future customers will be intensified to be a part of economic development of the country.Recommendations:I would like to share the following recommendations that I have made after analyzing the above findings:

The number of customer is increasing. To keep the commitment, NBL must increase its manpower to solve the customer’s problem more effectively and efficiently within short time.

National Bank Limited should take necessary steps about the marketing of their products. Now there are so many banks in the country, which are making the Banking sector more competitive, diversifying and dynamic. Each and every Bank is offering their best. So to exist in this competitive market NBL should go for a vast marketing of its products. They can give advertisements in newspaper and magazine, television, billboards and neon signs. As we know this is a very competitive market, to make its position stronger the Bank, may use other policies like, rather bring the customer to the Bank, the Bank may go to the customer. The Bank may introduce a new department like Marketing & Advertising. They will concentrate on only on marketing, promotion, sales and advertising.

Q-Cash service should be available at all the branches of NBL. Debit card is getting very much popular among the people. But the problem is there are limited booths. NBL should increase its Q-Cash booths. Otherwise, it will lose many of its customers.

Other banks of the country are now going to introduce new computerized technologies. With that a customer can make transaction by sitting at home (online transaction). They are

announcing these facilities with such an advertisement that attracting both existing and potential customer. So, MBL should update its banking technology to catch up the update customer. Otherwise it will be difficult for the Bank to hold its existing client.

o NBL should increase different types of deposit schemes to increase the

number of customers. The internal decoration of the branch should be improved. The Bank may introduce customer service department. It will

concentrate on customers inquiry, phone banking, Balance Check. As the competitors offering a higher interest rate on deposits and

lower charges in loans, NBL should think about it and if possible then maintain the interest rate and bank charges as similar as to its competitors.

Other private commercial banks (Like Prime Bank Limited) are offering more relaxed Individual Loan. So, in order for competing in the market, NBL should make their personal loan more relaxed than other competitors.

NBL should practice a participant marginal process. Because in this, all the employees get chance for participating in problem recognition and problem solving and this will make the employees feel better which will work as a motivation weapon. Also “Award System” should be activated depending on the Performance Appraisal of the Employees.

BIBLIOGRAPHY

1. Annual Report of National Bank Limited 2007

2. Companies Act 1994

3. Commercial Bank-Peter S. Rose

4. Different types of Brochures of National Bank Limited

5. Internet Edition of Annual Report 2007 of Bangladesh Bank

6. Website of National Bank Limited - www.mblbd.com

7. Website of Bangladesh Bank - www.bangladesh-bank.org

8. Verma, J. C., Manual of Merchant Banking (3rd Edition)